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For those who have been following our updates and charts on Telegram, you remember that we've posted the same chart back in December 2018 pending the completion of the green IH&S. At this moment, the market seems to have completed enough consolidation to attempt another breakout to complete the last shoulder of the IH&S and activate it with a hit of 0.040.

You can clearly notice looking at the chart that ETHBTC has a strong repeating IH&S bull reversal historical pattern (we are going for the 3rd now) within the log parallel bull channel , and once that we activate the IH&S we will very likely have a similar explosive Megabull on this pair (even ETHUSD ) towards the top of the channel around few potential targets depending on how Bitcoin pans out:

0.32-0.36 BTC
0.51-0.61 BTC - which is most likely the final target, target that we had since December

The question is pretty much the timing hence why two fractals were included with the blue fractal topping on August 2019 and the delayed purple fractal with a top in May 2020 right around Bitcoin's halving. Feel free to discuss if you agree or disagree!

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Comment:
Can't go wrong in buying near the bottom of the bull parallel channel

Trade active:

Comment:
ETHBTC is currently losing the log bull parallel channel with that drop below 0.031-0.029 support and it would be safer to switch back to Bitcoin momentarily.

We could also lose the IH&S potential with a drop below 0.027 as the last shoulder would be too deep and VOID that bull reversal pattern.

If the IH&S is lost, then we will have to look for a double bottom at 0.0257-0.0240 area which may occur when Bitcoin hits $6,000-6,400.

Comment:
Not liking what I am seeing on ETHBTC here. The momentum on the 30min 3H 4H 6H is bearish and a sudden strong move by Bitcoin in the next few hours can send it washing down fast. Here is what to look for in the incoming hours:

If we go below 0.029 to 0.028-0.277 then we are most likely going to see that IH&S cancelled and the double bottom trade activated.
The double bottom trade would be a test of the 0.0257-0.0240 previous support which is also the bottom of the blue falling wedge.

0.0257-0.0240 would be a good area to buy at or take a long.

Stoploss: The bulls will need to break up past the top of the blue potential falling wedge at 0.0314 and hit 0.0335 to reverse the trend to bullish very short-term. For a mid-term bullish signal past 0.038 would be needed

Comment:

Comment:
Looks like ETHBTC stopped in the middle grey area between the double bottom and IH&S last shoulder at 0.028-0.0277 and spiked back up.

Currently it is trying to break the top of the blue falling wedge at 0.0314 and hit 0.0328 to confirm a bull reversal short-term. I am watching this closely for a confirmation. If it fails to confirm the break out then a drop to 0.029 would be in the cards. The ETHBTC action will be closely tied with Bitcoin's move soon to $6,000-6,400 which could add considerable selling pressure on the ETHBTC ratio, so it will be interesting to see the outcome.

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These ratios are unrealistic IMO. This implies that Ethereum would have a higher marketcap than Bitcoin. I just don't see this happening or this fractal playing out the same way. The ICO craze is long gone, so where is the supply of ETH going to get locked up?

YES someone else is seeing this potential too. I just did a video on why ETH could see a 70% move here soon correlated with the psychology of a market cycle. I like how you guys are showing this move based on trendlines. We are using the Martin Trend Trader that gives up long and short alerts to get in at the bottom of these moves and we're currently long awaiting your prediction to come true :) Best of luck you guys!

@CryptoniteTV, good chart yes bearish H&S short-term possible although the likely hood is low unless the higher highs and higher lows gives in and we make lower lows. But definitely were keeping an eye on that as if it plays out it would open the door to our earlier double bottom call.

if you value it at 0.51 BTC, then the price of ETH would be around at 15x from where it is now. If BTC grows let's say 10x, then BTC would be priced at 50k$. That means ETH would be around 25k$ per token...
That's a market cap of around 275 Billion $. I don't believe that's possible, at least not yet. I believe it would take more than 10 years to get anywhere near a 275 B$ valuation for ETH.